NFP to Determine EUR/USD Direction
The EUR/USD pair weakened during trading on Thursday, August 6, 2026, as the US dollar regained support ahead of the release of key employment data. The euro fell approximately 0.28% to the US$1.1521 range, while the dollar index rose 0.31% toward the 99.97 level.
The dollar's strengthening was driven by investor caution ahead of the US Nonfarm Payrolls report. Markets anticipate the US economy added around 80,000 jobs in July—up from 57,000 in June—while the unemployment rate is projected to remain at 4.2%. The data will provide crucial clues regarding the Federal Reserve's future interest rate policy.
Downward pressure on EUR/USD also intensified after the yield on 10-year US government bonds rose to approximately 4.668%. Rising yields boosted the appeal of dollar-denominated assets, particularly after jobless claims data indicated a relatively stable US labor market and a drop in layoffs to a two-year low.
Beyond labor market factors, a surge in oil prices also weighed on the euro, as the European region is highly sensitive to rising energy costs. Brent crude prices jumped above US$82 per barrel following renewed concerns regarding shipping restrictions in the Strait of Hormuz. This situation threatens to heighten inflationary pressure in Europe while simultaneously slowing the region's economic growth. (CP)
